Presenting The "Rise Of The HFT Machine" - Visual Confirmation How SkyNet Broke The Stock Market On US Downgrade Day

Zero Hedge has not been focusing much on the topic of our broken equity markets recently because if by now, following over three years of coverage, someone is not aware just how fragmented, manipulated and largely broken the market truly is, they never will. Yet every now and then it worth reminding readers who may have stumbled on this blog recently, just how bad things are in graphic format. Our friends at Nanex, who are by far the best forensic analysts of everything that is busted with the US stock market, have completed a masterpiece analysis showing the churning (packet traffic) in the various fragmented US market venues, from the NYSE to the Nasdaq to BATS and so forth, on a daily basis beginning in January 2007 and continuing through today. While the "rise of the HFT machine" over the past 5 years, following the adoption of Reg NMS, will hardly be a surprise to most, what is stunning is the first animated confirmation of the market terminally breaking on August 5, 2011, the day the US was downgraded, an observation that first was made right here on Zero Hedge. Which begs the question: what really happened in the stock market on August 5, 2011 when the US was downgraded to AA+, when everything literally broke, who is intervening constantly in the stock market, and why are they doing so via various HFT intermediary mechanisms?

The song starts out slow, then the chorus picks up around April 2010. Gets intense again around April 2011, and Ozzy starts really ramblin around August 2011. Brain damage and all, he still can rock this house!!

I recommend sitting through the whole thing. It PROVES how broken and manipulated this Krugmanian sideshow of an economy really is. Fucking farce, actually. This pig is going down - hope it blows up all over Benocides' face.

“What concerned us are HFT strategies like latency arbitrage, which is just about getting from point A to point B faster, sniffing out large institutional orders like ours and trying to get ahead of them,” Steiner says

THOR is part of a broader institutional backlash against certain hedge fund strategies.

The system has been in use for a year, and Steiner says it has greatly improved liquidity for RBC and its clients — allowing them to execute orders at the desired price.

Steiner says they had no quarrel with the majority of high frequency trading, which now accounts for 53 percent of the equities markets. That is up from 20 percent in 2005, albeit down from of peak of 60 percent in 2008. RBC itself uses some elements of high frequency trading.

And not just for you guys that can do a couple differential equations:

The link below is an ad on youtube that my son wrote for his new book, The Alchemy of Number Theory.
http://www.youtube.com/watch?v=N5syRnaXwpg&feature=youtu.be
He did the programing and even the music for the advertisement, after working on the book for more than four years. He did this for one reason. He wants everyone to know Math; and be empowered by that knowledge. He even wrote a solution for all prime numbers that you can see on his website for one reason; the glory of the Lord God, and so the average person would no longer be mystified by math, but understand its foundations and logical conclusions.
Too many people are afraid of mathematics because our schools have made it far more difficult than it is, and in fact don't want you to understand it or its foundations, or its implications because those lead directly to God as the only logical conclusion of the universe we live in.
You may or may not want to buy his book. I'll tell you this, it is not an easy book. If you are interested, it will take a lot of personal time and concentration, but if you are willing, it will give you the basis of all math and philosophy that you need to build on in order to come to a logical conclusion in any argument. And you don't have to be a math whiz to get it, it is all laid out for you but you do have to concentrate and think about it.
Anyway, the reason I am sending this email is just that I'd like you to look at the ad that he wrote for the book on youtube.
http://www.youtube.com/watch?v=N5syRnaXwpg&feature=youtu.be
And let us know what you think of the ad, by indicating whether you like it or not, by clicking on the "Like" or "Dislike" under the video.
If you like it and want no further insight, that's great; if you want to know more you can link to the Prime Thesis here:
https://sites.google.com/site/primenumbertheory/
And amaze all your friends by being able to give them every prime number that exists.
or go here and look for the book:
http://www.amazon.com/Alchemy-Number-Theory-1/dp/1470002159/ref=sr_1_2?ie=UTF8&qid=1328287867&sr=8-2
And make sure your kids understand math.
And The Creator.
As the dad of the author of this book, I can only tell you that if you want to be a philosopher (and be a good one), you have to be logical and this book gives you the tools to do just that. And you will not find this kind of rigor in government run schools today.
Thanks and shalom.
WarriorClass
III

Watching this, with it's beating, pulsing, spiking and ebbing rhythym, building into a crescendo of frenetic activity, and then just as seemlessly slipping into a calm, relax, lobotomized state of a bizarre tranquility, coupled with knowing at least something about how brutally warped and broken all markets are now, thanks in large measure to the man they call The Bernank (& his lackeys in tow), it reminds me of the following quote, during one of best scenes (IMO), of the genuinely fantastic movie Gladiator -

Proximo:

Oh you should see the Colosseum, Spaniard! 50,000 Romans watching every movement of your sword, willing you to make that killer blow. The silence before you strike, and the noise afterwards, it rises, rises like...like a storm, as if you were the Thunder God himself!

But that was just a movie, empire lasts forever, and Rome wasn't built, nor did it die, in a day.

I hereby re-nickname The Bernank to BernanCommodus, henceforth to be remembered as he whoeth hath breaketh all markets.

Oh, I know Iknow!!! It is the new virtual fireplace app. for smartphones! Now I just need to slap a big enough monitor over the heat sucking hole in my house and I can use it there too! And, it will sure cut down on all the work of wood fires, just need the sound loop to go with it though.

The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

The information seems to show the rise of High Frequency Trading algorithms in play, thus proposing that the current stock trends are being propped up by hedge fund operations to provide liquidity. The spike in volume for August 2011, as things were downgraded implies a broken method without retail investor support. There's no investors, computer program trading between the major firms. Lots of people suspected such antics, but this is the first time information has been shown streaming visually to document the volume of the trading activity.

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The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

Life Extension Foundation (LEF) Protocol for the H-e-e-v-y mentals. Chlorella, Vit C, and other stuff.

Bath in lots of 325 mesh bentonite clay (0.5 pound to start do not exceed 2. pound and handful of epsom salts (drink assload of water.) sit 1/2 hour lay 1/2 hour. To start. Hot water as hot as you can stand, don't hurt yourself but the point is to sweat.)

LEF also has a listing of out-patient "cool" physicians who wiill chelate that crap for you.

As far as the Fluoride goes.

Move!

Do your best. :)

I was abjectly poisoned in 2005 with Mercury after extraction of Amalgam fillings. Very bad news. Very!

The speed is actually what highsights the message. See the forest not the trees. The frequencies and "spikes" in the data absolutely jump post August 5th. The information is in the "jumpiness".

Does this give an indication of wobble? Might want to slow this down and note any swings or arhythmic oscillations in the data (increased amplitudes on a non periodic frequency?). If chaos, or overcorrection occurs does this break down?